Nestlé has agreed to sell its US ice cream business to Froneri, an ice cream-focused joint venture Nestlé created in 2016 with PAI Partners, for a transaction value of US$4 billion.
The addition of the US market further expands Froneri’s business, which has operations span across Europe, Latin America, Africa and Asia-Pacific. The acquisitions of TipTop in New Zealand and Nestlé’s ice cream business in Israel have also increased Froneri’s growing global footprint.
Ibrahim Najafi, CEO of Froneri, commented: “The acquisition is a testament to the strength and longevity of our relationship with Nestlé. This partnership and the continued support of PAI Partners will be essential to ensuring we continue to delight consumers with innovative, high quality products in all markets.”
Nestlé USA’s ice cream business comes with a management team, marketing, manufacturing and sales and distribution capabilities. In 2018, turnover was US$1.8 billion. Its portfolio of ice cream brands includes Häagen-Dazs, Drumstick and Outshine.
Mark Schneider, CEO of Nestlé, concluded: “The creation of Froneri has been a phenomenal success. We are now making this business our global strategic partner in ice cream, and we are convinced that Froneri’s successful business model can be extended to the US market. With this transaction, we are taking a decisive step towards our goal of achieving global leadership in ice cream.”
The transaction is expected to close in Q1 2020. Nestlé will continue to manage its remaining ice cream business in Canada, Latin America and Asia as part of its current market structure.
